Contract Clause Extraction and Risk Flags

• General Counsel
• Head of Legal Operations
• Contract Manager
• Law Firm Partner (Commercial)

Most organisations hold years of executed contracts as scanned PDFs on shared drives: MSAs, SOWs, leases, distribution and vendor agreements, each with amendments and side letters. Nobody can say quickly which contracts auto-renew next quarter, which carry uncapped indemnities or which need consent on a change of control.

We build a contract review pipeline that reads executed and incoming contracts, including scanned and stamped copies, splits them into clauses and links amendments to the clauses they change. It extracts the terms your team cares about, such as parties, term, renewal, termination rights, notice periods, liability caps, indemnities, governing law, dispute resolution, assignment, change of control and data protection, each with a citation to clause and page. Extracted positions are compared with your playbook and fallbacks, and deviations are flagged with the reason. Lawyers review flags on one screen, and confirmed data feeds your contract repository and renewal calendar.

• Clause segmentation for scanned, stamped and signed contracts in English and Hindi
• Links amendments, addenda and side letters to the clauses they modify
• Extracts parties, dates, renewal, termination, liability, indemnity, governing law and dispute resolution
• Compares each position with your standard and fallback positions
• Flags missing clauses, such as data protection or limitation of liability
• Builds an obligation and renewal calendar from confirmed data

1. 01Collect contractsContracts are loaded from shared drives, the CLM or email, and grouped with their amendments.
2. 02Segment and readOCR and layout analysis split each document into numbered clauses and schedules.
3. 03Extract key termsAgreed fields are extracted, each with a confidence score and a clause citation.
4. 04Compare with the playbookPositions are checked against your standard and fallback positions, and gaps are flagged.
5. 05Lawyer reviewA lawyer confirms, corrects or dismisses each flag and each low-confidence field.
6. 06Update the repositoryConfirmed terms go to the contract repository, and renewal and notice alerts are scheduled.

1. Ingestion
   • Shared drive and CLM connectors
   • Email intake for counterparty paper
   • Amendment grouping by contract
2. Document understanding
   • OCR with layout and stamp detection
   • Clause segmenter
   • LLM term extractor with schemas
3. Playbook engine
   • Standard and fallback positions per clause
   • Deviation and missing-clause rules
   • Risk rating logic agreed with legal
4. Review
   • Lawyer review screen with clause highlights
   • Decision and comment log
5. Repository and alerts
   • Clause register export to the CLM
   • Renewal and notice calendar
   • Audit trail

A lawyer confirms every flagged deviation and every low-confidence field before it enters the register. Risk ratings are suggestions; legal decides what is acceptable and what to renegotiate.

• Contract lifecycle management system
• Document management system such as iManage or SharePoint
• Email for counterparty paper
• Calendar and task tools for renewal alerts
• ERP or procurement system for vendor master data

• Every extracted value cites the clause and page it came from
• Playbook positions owned and versioned by the legal team
• No contract marked acceptable without lawyer review
• Documents processed in your environment, and models do not train on them
• Matter or business-unit access controls carried into the tool

• Contracts contain personal data of signatories and counterparties; designed to support DPDP Act 2023 security safeguards and access control.
• The tool supports lawyers' review; it does not provide legal advice.

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• Real Estate & Construction

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